Cost of Living Adjustment (COLA) Calculator
Apply a cost-of-living adjustment to a salary, pension or Social Security benefit: the new amount, the raise per month and per year, several years of COLAs, the COLA from two CPI values, net pay after Medicare Part B and the real change against inflation. Includes the 2027 Social Security COLA of 3.6%.
How it works
New amount = current × (1 + COLA% ÷ 100) · Monthly increase = yearly increase ÷ 12 · COLA from an index = (later index ÷ earlier index − 1) × 100 · After n years = current × (1 + first COLA) × (1 + later COLA)^(n − 1) · Real change = (1 + COLA) ÷ (1 + inflation) − 1
A cost-of-living adjustment raises pay or benefits to offset inflation. It is usually tied to a price index, so the percentage tracks how much prices rose over the period. Social Security, for example, compares the average CPI-W for July–September with the same quarter a year earlier, rounds to the nearest 0.1% and applies the result to December benefits, which are paid in January. For 2027 that gives 3.6% (328.746 ÷ 317.265 − 1); the 2026 COLA was 2.8%. Enter the amount per year or per month, choose a percentage, a Social Security year or two index values, and the calculator shows the new amount and the raise in both periods. More options let you repeat the adjustment for several years, compare it with the inflation you face, subtract a deduction such as the Medicare Part B premium to see the change in your net check, and round the way Social Security does (down to the dime).
Worked example
A 3.2% COLA on $50,000 adds $1,600, giving $51,600 — $133.33 more a month. A $2,000 monthly Social Security benefit with the 2027 COLA of 3.6% rises by $72 to $2,072 a month, or $864 more over the year.
Sources: SSA — Latest cost-of-living adjustment · SSA — History of COLAs
Frequently asked questions
What is the Social Security COLA for 2027?
3.6%, announced in October 2026 and paid from January 2027. It is the rise in the average CPI-W from July–September 2025 (317.265) to July–September 2026 (328.746). The 2026 COLA was 2.8% and the 2025 COLA was 2.5%.
How is a COLA calculated from the CPI?
Divide the later index value by the earlier one, subtract 1 and multiply by 100. Social Security uses third-quarter CPI-W averages and rounds to the nearest tenth of a percent. Choose “Work it out from two price-index values” to do this here.
Why did my Social Security check rise by less than the COLA?
Medicare Part B premiums and other deductions usually rise in the same January, and Social Security rounds benefits down to the dime and the payment down to the dollar. Enter the old and new deductions under More options to see the net change.
Is a COLA the same as a merit raise?
No. A COLA keeps pace with prices; a merit raise rewards performance and is on top of any COLA. A COLA that equals inflation leaves your buying power unchanged.
Who gets COLAs?
They are common for pensions, Social Security, SSI, veterans’ benefits, military and federal retirement, and many union or public-sector contracts.
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This is an educational estimate, not financial advice. Confirm exact figures with your lender, employer or a licensed advisor.